PRESS DIGEST-Australian Business News - Dec 20

December 19, 2012|Reuters

Compiled for Reuters by Media Monitors. Reuters has notverified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

-- John Morschel, chairman of Australia and New ZealandBanking Group, yesterday said at the lender's annualgeneral meeting that Australia's economy would continue tosuffer from low growth in the near-term, thanks to thecombination of global volatility and the slowing of theresources boom. "In Australia, the key challenge is weakeningmining investment as softer commodity prices, high labour costs,policy uncertainty and the high Australian dollar all workagainst new investment projects," Mr Morschel warned. Page 13.

-- Alison Watkins, managing director of GrainCorp,yesterday defended the way the grain handler managed a A$2.8billion takeover bid from United States-based food producerArcher Daniels Midland. "I am very comfortable that wehave very good shareholder support for the position we havetaken," Ms Watkins said. Ellerston Capital, a fund manager andformer shareholder in GrainCorp, criticised the company forfailing to engage with ADM after the latter improved its bid toA$12.20 a share from A$11.75 a share. Page 13.

-- The Australian stockmarket has gained 6.5 percent overthe last month thanks to a rebound in the spot price of ironore, with the commodity's resurgence leading to a higher stockprice for miners such as Rio Tinto and BHP Billiton. "A lot ofthe market was very bearish about China, very bearish aboutcommodities and the last month or so has basically been a bit ofa challenge to that," Mark Harrison from fund manager MacquarieFunds Management, said. Page 13.

-- James Packer is on the verge of finally securing amajority stake in Crown Ltd more than 18 years afterhis father first invested in what has become the largest casinooperator in Australia. Investment house UBS helped arrange atrade for Mr Packer yesterday afternoon, with sources sayingthat the billionaire will increase his holding to 50.l percentfrom 48 percent, a trade worth A$142.5 million. Mr Packer hasbeen able to avoid paying a takeover premium on the stock byusing creep provisions, which limited him to acquiring only 3percent of Crown's stock every six months. Page 15.

THE AUSTRALIAN (www.theaustralian.news.com.au)

-- Ski, skate, surf and street wear retailer BillabongInternational is being encouraged to accept a $527million takeover bid from company stalwart Paul Naude after thegroup announced a 44 percent cut to full-year earnings beforeinterest, tax, depreciation and amortisation to between $85million and $92 million, its third profit downgrade in a year. Billabong confirmed that a "confidential, indicative,non-binding and conditional proposal" worth $1.10 a share hadbeen submitted by Mr Naude, who is allied with UnitedStates-based private equity group Sycamore Partners. Page 17.

-- Australia and New Zealand Banking Group chairmanJohn Morschel yesterday said the lender would mitigate theeffects of a weakening Australian economy through growth in itsAsia-Pacific businesses. Shareholders at ANZ's annual generalmeeting were told that political volatility and rising labourcosts would further add to Australia's problems in the comingyear. "Together with weak business and consumer confidence,this leaves overall business conditions in the economy softer,"Mr Morschel noted. Page 17.

-- Dairy farmers in Australia are set to receive a majorboost following a decision by the Chinese government toradically cut tariffs on infant milk formula, in a bid that willfurther liberalise the communist country's economy and improveits supply of the product. Australia is the third-largestprovider of infant milk powder in the world and has a 15 percentshare of the Chinese market. New Zealand and Singapore are theworld's largest producers. Page 17.

-- The rate of electronic trading among institutionalinvestors appears to have slowed, according to a review ofbrokers conducted by researchers Peter Lee Associates. Thestudy found that the use of dark pools - which allow forsignificant amounts of trading off-market so as to not impactmarket prices - now represents 6 percent of all trades, up from3 percent last year. Electronic trading, however, onlyincreased to 11 percent of all trades from 10 percent lastyear. Page 17.

THE SYDNEY MORNING HERALD (www.smh.com.au)

-- RSM Bird Cameron has filed a lawsuit against GlennAnthony Crisp, a former partner at the insolvency specialists,over claims that he defrauded and misappropriated over A$500,000from the business. The Federal Government earlier this weekunveiled draft reforms for the insolvency industry that wouldgive creditors more authority to limit spiralling fees and sackliquidators. Page B1.